UNITED STATES DISTRICT COURT Case No. ll-zl7s7-civ ...file/All+Dream+and+Saer.pdf9. délndividual...
Transcript of UNITED STATES DISTRICT COURT Case No. ll-zl7s7-civ ...file/All+Dream+and+Saer.pdf9. délndividual...
UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF FLORIDA
Case No. ll-zl7s7-civ-M adinezN cAliley
Federal Trade Commission, and )State of Florida, Office of the Attorney General, )
)Plaintiffs, )
)V.
VGC Corporatien of America,
a Florida Corporation, also #4A AlI Dreamts)Vacations, All Dreams Travel, Five Starts)Vacationsy 5 Starts) Vacations, Total Tours,and Travel & Tours Corp.,
))))))))
AlI Dream Vacations Corp.,
a Florida Corporation, also #4A
AlI Dreams Vacations,
Violeta Gonzalez, a/k/a Violeta Rojas,individually, and as an officer of
VGC Corporation of America,
Cesar A. Gonzalez,individually, and as an officer of VGC
Corporation of Am erica,
))))
Samir Jose Saer Rodriguez, a/k/a Sam ir Saer,
individually, and as an officer of
VGC Corporation of America and )AIl Dream Vacations Corp., )
)Defendants. )
)
CONSENT JUDGM ENT AND CONSENT FINAL ORDER AS TO SETTLINGDEFENDANTS SAM IR JO SE SAER RODRIGUEZ AND
ALL DREAM VACATIONS CO RP.
This matter comes before the Court on Complaint of Plaintiffs, Federal Trade
Commission ($TTC''), and the State of Florida, Oftice of the Attorney General (the Eçstate of
Florida'). Plaintiffs commenced this action by filing their Complaint for Permanent Injunction
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and Other Equitable Relief in this matter, pursuant to Sections 13(b) of the Federal Trade
Commission Act (CCFTC Act''), 15 U.S.C. j 53(b), and the Florida Deceptive and Unfair Trade
Practices Act, Chapter 501, Pal4 II, Florida Statutes (2010). The Complaint alleges that
Defendants A11 Drenm Vacations Cop., also d/b/a A11 Drenms Vacations, and Samir Jose Saer
Rodriguez, also known as Samir Saer, together with VGC Corporation of America, also d/b/a
A11 Drenmts) Vacations, All Dreams Travel, Five Starts) Vacations, 5 Starts) Vacations, Total
Tours, Travel & Tours Corp., and Al1 Dream Tours; Violeta Gonzalez, also known as Violeta
Rojas; and Cesar A. Gonzalez made material misrepresentations and failed to disclose materialfacts to consumers in connection with the advertising, marketing, promotion, offering for sale or
sale of vacation packages.
Plaintiffs and Defendants Al1 Dream Vacations Co1.p., also d/b/a All Dreams Vacations,
and Samir Jose Saer Rodriguez, also known as Snmir Saer (Eçsettling Defendants'), have now
agreed to a settlement of this action without any adjudication of any issue of fact or law, and
without Settling Defendants admitting liability for any of the violations alleged in the Complaint.
The parties' have flled ajoint motion asking the Court to enter the following consented to
fndings and rulings. See (D.E. No. 1 1 1). Accordingly, it is hereby ORDERED, ADJUDGED
AND DECREED as follows:
FINDING S
1. This Court has jurisdiction over the subject matter of this case and personal
jurisdiction over each of the Settling Defendants.2. Venue lies properly with this Court.
3. The activities of the Settling Defendants are in or affecting commerce, as defined
in Section 4 of the FTC Act, 15 U.S.C. j 44.
4. The Plaintiffs have authority to seek the relief they have requested and the
Complaint states a claim upon which relief may be granted against the Settling Defendants.
The Settling Defendants waive al1 right to seekjudicial review or otherwise
challenge or contest the validity of this Judgment and Final Order (dsFinal Order'').
6. The Settling Defendants further waive and release any claim the Settling
Defendants may have against the Plaintiffs, or any of their employees, representatives or agents,
including any claim they may have under the Equal Access to Justice Act, 28 U.S.C. j 2412,
nmended by pub. L. 104-121, 110 Stat. 847, 863-64 (1996).
The Settling Defendants state that they have entered into this Final Order freely
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and without coercion. The Settling Defendants further state that they have read or have
otherwise been fully advised of the provisions of this Final Order and are fully prepared to abide
by them .
8. This Final Order, and the relief awarded herein, is in addition to, and not in lieu
of, any other remedies that may be provided by law, including both civil and criminal remedies.
9. The parties shall each bear their own costs and attorneys' fees incurred in this
action.
Entry of this Final Order is in the public interest.
DEFINITIONS
For purposes of this Final Order, the following definitions shall apply:
dsAsset'' or GAssets'' means any legal or equitable interest in, right to, or claim to,
any real or personal property, including, but not limited to: 'dgoodsy'' dtinstruments,''
$$ i ment '' ççfixtures '' $1 eneral intangibles '' dtinventoxy'' Sschecks '' or çûnotes'' (as these termsequ P , , g , ,
are defined in the Uniform Commercial Code), lines of credit, chattels, leaseholds, contracts,
mail or other deliveries, shares of stock, lists of consumer names, accounts, credits, premises,
receivables, funds, and a11 cash, wherever located.
ddAssisting others'' includes but is not limited to, providing any of the
following services to any person or entity: (1) performing customer service functions, including,
but not limited to, receiving or responding to consumer complaints; (2) formulating or providing,
or arranging for the formulation or provision of, any sales script, other marketing material, or
marketing services of any kind; (3) providing names of, or assisting in the generation of,
potential customers; (4) providing credit card merchant processing accounts, or otherwise
providing access to a billing and collection system (such as a credit card, checking, savings,
share or similar account, utility bill, telephone bill, mortgage loan account or debit card), or
causing any charges to be made to such an account or utilizing such a system; or (5) acting as an
offker or director of a business entity.
3. dtBilling information'' means any data that enables any person to
access a customer's or donor's account, such as a credit card, checking, savings, share or similar
account, utility bill, mortgage loan account, or debit card.
4. ddcorporate Defendant'' means All Dream Vacations Corp., also d/b/a A11
Dreams Vacations, and its successors and assigns.
çdcustom er'' means any person who is or may be required to pay for goods or
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services offered.
6. dçsettling Defendants'' means the lndividual Defendant and the Corporate
Defendant, individually, collectively, or in any combination.
7. SéDocument'' or tdDocuments'' means any materials listed in Federal Rule of Civil
Procedure 34(a), and includes writings, drawings, graphs, charts, photographs, audio and video
recordings, computer records, and other data or data compilations, stored in any medium, from
which information can be obtained either directly or, if necessary, after translation into a
reasonably usable form through detection devices. A drah or non-identical copy is a separate
Ssdocument'' within the meaning of this term.
8. tûFinancial institution'' means any bank, savings and loan institution,
credit union, or any financial depository of any kind, including, but not limited to, any brokerage
house, trustee, broker-dealer, escrow agent, title company, commodity trading company, or
precious metal dealer.
9. délndividual Defendant'' means Samir Jose Saer Rodriguez, also known as Samir
Saer, and whatever other names by which he may be known.
10. dsM aterial'' means likely to affect a person's choice of, or conduct regarding,
goods or services.
1 1. ddperson'' means a natural person, an organization or other legal entity, including
a com oration, partnership, sole proprietorship, limited liability company, association,
cooperative, or any other group or combination acting as an entity.
12. dtplaintiffs'' mean the Federal Trade Commission (Edcommission'' or (TTC'') and
the State of Florida, Office of the Attorney General.
tsReceiver'' means Jonathan Perlman, the receiver appointed by the Court over
defendants VGC Corporation of America, also d/b/a Al1 Drenmts) Vacations, A1l Dreams
Travel, Five Starts) Vacations, 5 Starts) Vacations, Total Totlrs, Travel & Tours Corp., and A11
Dream Tours; and A11 Drenm Vacations Corp., also d/b/a A11 Drenms Vacations, and their
successors and assigns, as well as any subsidiaries, and any tictitious business entities or
business nnmes created or used by these entities, or any of them.
14. çsRepresentatives'' means the Settling Defendants' officers, agents, servants,
employees and attorneys, and al1 other persons in active concert or participation with any of
them who receive actual notice of this Final Order by personal service, facsimile transmission,
email or otherwise.
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15. Gvacation Package'' means any goods or services offered in relation to a
vacation, including but not limited to transportation; accommodations; amenities; travel plnnning
services; booking and reservation services; and certificates, vouchers, coupons, reservation
forms, or other documents that purport to be full or partial payment for, or redeemable for,
transportation, accommodations, car rentals, tottrs, sports or other activities, meals, drinks, or
entrance to special events or locations.
1. PERM ANENT BAN ON VACATION PACKAGES
IT IS HEREBY ORDERED that the Settling Defendants, whether acting directly or
through any person, business entity, trust, corporation, partnership, limited liability company,
subsidiary, division, or other device, or any of them, are hereby permanently restrained and
enjoined from engaging in, participating in, or assisting others in the marketing, advertising,
promotion, offering for sale, or sale of Vacation Packages.
lI. PROHIBITED BUSINESS ACTIVITIES
IT IS FURTHER ORDERED that the Settling Defendants, and their Representatives,
whether acting directly or through any trust, corporation, subsidiary, division, or other device, or
any of them, in connection with the advertising, marketing, promoting, offering for sale, or sale
of any good, service, plan, or program, are hereby restrained and enjoined from:
A. M isrepresenting, or assisting others in misrepresenting, directly or indirectly,
expressly or by implication, any material fact, including, but not limited to, that:
Consumers who respond to the Settling Defendants' promotions have won
a prize; and
2. Consumers who make a payment to the Settling Defendants will receive a
good, service, plan, or program.
B. Failing to disclose, or assisting others in failing to disclose, directly or indirectly,
expressly or by implication, al1 material conditions, limitations, or restrictions to
purchase, receive or use goods or services offered to consumers, including, but
not limited to:
additional required payments;
age, income, or marital-status requirements; or
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3. required attendance at a timeshare presentation.
C. Violating any provision of the Florida Deceptive and Unfair Trade Practices Act,
Chapter 501, Pal4 II, Florida Statutes (2010).
111. PROHIBITION ON COLLECTING ACCOUNTS
IT IS FURTHER ORDERED that the Settling Defendants and their Representatives,
whether acting directly or through any trust, corporation, subsidiary, division, or other device, or
any of them, are hereby permanently restrained and enjoined from attempting to collect,
collecting, or assigning any right to collect payment from any consumer who purchased or
agreed to purchase any Defendant's goods or services, where the purported authorization for the
alleged sale occun'ed prior to the entry of this Final Order.
IV. ORDER PROVISION REGARDING CUSTOM ER INFORM ATION
IT IS FURTHER ORDERED that the Settling Defendants and their Representatives are
permanently restrained and enjoined from:
disclosing, using, or benetkting from customer infonnation, including the name,
address, telephone number, email address, social security number, other identifying information,
or any data that enables access to a customer's account (including a credit card, bank account, or
other fnancial account), of any person which was obtained by any Settling Defendant prior to
entry of this Final Order in connection with advertising, marketing, promotion, offering for sale
or sale of any Vacation Package, or any good or service advertised, marketed, promoted, offered
for sale or sold; and
B. failing to dispose of such customer information in all forms in their possession,
custody, or control within thirty (30) days after entry of a snal order as to a11 defendants.
Disposal shall be by means that protect against unauthorized access to the customer information,
such as by burning, pulverizing, or shredding any papers, and by erasing or destroying any
electronic media, to ensure that the customer information cannot practicably be read or
reconstructed.
Provide4 however, that customer information need not be disposed of, and may be
disclosed, to the extent requested by a government agency or required by a law, regulation, or
court order.
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V. M ONETARY JUDGM ENT AND CONSUM ER REDRESS
IT IS FURTHER ORDERED that:
Judgment is hereby entered in favor of the Commission and the State of Florida
and against the Settling Defendants, jointly and severally, in the amount of $14,017,776.00.
B. Except as provided in Section VI of this Final Order, entitled tsRight to Reopen as
to Monetary Judgmentp'' this judgment shall be suspended on satisfaction of the followingconditions:
The Individual Defendant shall immediately deliver to the Receiver a11
right, title and interest to, and possession of, a11 motorized vehicles and
water craft owned by him, to the extent that he has not already done so;
Bank of America shall, within five (5) business days of the date of the
entry of this Final Order, transfer to the Receiver for the benetk of the
Plaintiffs all assets held on account for the Individual Defendant;
JpMorgan Chase & Co. shall, within tive (5) business days of the date of
the entry of this Final Order, transfer to the Receiver for the benefit of the
Plaintiffs all assets held on account for the lndividual Defendant; and
New York Life Insurance shall, within five (5) business days of the date of
the entry of this Final Order, transfer to the Receiver for the benefit of the
Plaintiffs the cash surrender value of the life insurance policy made on the
Individual Defendant's minor child and for the benetk of the lndividual
Defendant.
4.
A1l monies paid to the Commission and the State of Florida pursuant to this Final
Order (''joint monies'') shall be deposited into a fund administered by the Commission or its
agents on behalf of both the Commission and the State of Florida. This fund shall be used for
equitable relief, including, but not limited to, redress to consumers, and any attendant expenses
for the administration of such equitable relief. In the event that the Commission determines that
direct redress to consumers is wholly or partially impracticable orjoint monies remain after the
redress is completed, the Commission may, in its discretion, apply any portion of the joint
monies for such other equitable relief (including consllmer information remedies) as it
determines to be reasonably related to the practices alleged in the Complaint, relinquish its
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authority over any portion of the joint monies not used for equitable relief to the State of Florida,
as described in Subparagraph D below, or both. The Settling Defendants shall have no right to
challenge the Commission's choice of remedies under this Section. The Settling Defendants
shall have no right to contest the manner of distribution chosen by the Commission and the State
of Florida.
A11 joint funds not used for the equitable relief described in subparagraph C
(çsremaining joint funds'') shall be distributed among the Commission and thc
State of Florida in the following manner:
The State of Florida shall be reimbursed for the costs and fees it incurred
in this matter, including, but not limited to, its costs of investigation and
litigation; after which
A11 remaining joint funds shall be divided equally between the
Commission, for deposit into the U.S. Treasury as disgorgement, and the
State of Florida.
2.
E. No portion of any payment under the Judgment herein shall be deemed a payment
of any fine, penalty, or ptmitive assessment.
Settling Defendants relinquish al1 dominion, control, and title to the funds paid to
the fullest extent permitted by law. Settling Defendants shall make no claim to or demand for
return of the funds, directly or indirectly, through counsel or otherwise.
Settling Defendants agree that the facts as alleged in the Complaint filed in this
action shall be taken as true without further proof in any bankruptcy case or subsequent civil
litigation pursued by the Commission to enforce its rights to any payment or moneyjudgment
pursuant to this Final Order, including but not limited to a nondischargeability complaint in any
bnnknzptcy case. Settling Defendants further stipulate and agree that the facts alleged in the
Complaint establish a1l elements necessary to sustain an action by the Commission pursuant to
Section 523(a)(2)(A) of the Bankruptcy Code, 1 1 U.S. C. j 523(a)(2)(A), and this Final Order
shall have collateral estoppel effect for such purposes.
H. Settling Defendants are hereby required, in accordance with 31 U.S.C. j 7701, to
furnish to the Plaintiffs Settling Defendants' taxpayer identifying mlmbers (social security
number or employer identiscation number), which shall be used for puposes of collecting and
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reporting on any delinquent amount arising out of Settling Defendants' relationship with the
governm ent.
The lndividual Defendant agrees that he will not, whether acting directly or
through any corporation, partnexship, subsidiary, division, trade name, device, or other entity,
submit to any federal or state tax authority any return, nmended return, or other official
documtnt that takes a deduction for, or seeks a tax refund or other favorable treatment for, any
payment by the Individual Defendant pursuant to this Order. The Individual Defendant further
agrees that he will not seek a credit or refund of any kind for federal or state taxes or penalties
for tax years 2008, 2009, 2010, or 201 1. If the lndividual Defendant otherwise obtains a credit
or refund of any federal or state taxes or penalties paid for tax years 2008, 2009, 2010, or 2011,
then the lndividual Defendant shall promptly pay the Commission the nmount of such credit or
refund, together with any interest the Individual Defendant earned in connection with any such
credit or refund.
J. Unless he has done so already, the Individual Defendant is further required
to provide the Plaintiffs with clear, legible and full-size photocopies of his valid driver's license,
which will be used for reporting and compliance pumoses.
K. Any proceedings to lift the suspension of judgment instituted under this Section is
in addition to, and not in lieu of, any other civil or criminal remedies that may be provided by
law, including any other proceedings the Commission may initiate to enforce this Final Order.
VI. RIGHT TO REOPEN AS TO M ONETARY JUDGM ENT
IT IS FURTHER ORDERED that:
By agreeing to this Final Order, Settling Defendants reaffirm and attest to the
truthfulness, accuracy and completeness of their m itten Financial Statements dated M ay 23,
201 1 and August 22, 201 1. This Court's Final Order, and the Plaintiffs' agreement to enter into
this Final Order, are expressly premised upon the truthfulness, acclzracy, and completeness of
Settling Defendants' financial conditions, as represented in the Financial Statements referenced
above, which contain material information upon which the Plaintiffs relied in negotiating and
agreeing to the terms of this Final Order.
B. If, upon motion by Plaintiffs, this Court should find that one or more
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Settling Defendants failed to disclose any material asset, or materially misrepresented the value
of any asset, or made any other material misrepresentation in or omission from the Financial
Statements, the Court shall reinstate the suspended judgment against such Settling Defendants,
in favor of the Commission and the State of Florida, in the amount of $14,017,776.00, which
Plaintiffs and Settling Defendants stipulate is the amount of consumer injuryjointly and
severally caused by the Settling Defendants, less any payments made to the Plaintiffs, plus
interest from the entry date of this Final Order, ptzrsuant to 28 U.S.C. j 1961. Provide4
however, that in a1l other respects, this Final Order shall remain in full force and effect unless
otherwise ordered by the Coul't.
VII. RECEIVERSHIP PROVISIONS
IT IS FURTHER ORDERED that:
A. Except as modifed by this Section of the Final Order, the receivership
imposed by this Court shall continue as set forth in the Order of Preliminary Injunction (Doc.
57).
B. The Receiver shall take all steps necessary to immediately wind down the affairs
and liquidate the assets of the Corporate Defendant, as well as the assets of the Individual
Defendant surrendered to the Receiver pursuant to Section V of this Final Order, from wherever
and in whatever form they may be located.
C. Upon the liquidation of any asset held by or surrendered to the Receiver, the
Receiver shall, at the FTC'S request, immediately transfer all proceeds to the FTC, or its
designated representative, in partial satisfaction of the judgment pursuant to Sections V and VI
of this Final Order.
D. Settling Defendants, their offcers, employees, agents, servants, attorneys,
representatives, predecessors, successors, assigns and affiliates, release and discharge the
Receiver and those that he employed in this matter from any and a11 claims, demands, actions,
causes of actions, or suits that now exist or may hereafter accrue, whether known or ttnknown,
that relate to this Final Order or to the lawsuit that is the subject of this Final Order.
VIII. COM PLIANCE M ONITORING
IT IS FURTHER ORDERED that, for the purpose of (i) monitoring and investigating
compliance with any provision of this Final Order and (ii) investigating the accuracy of any
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Settling Defendants' tinancial statements upon which the Plaintiffs' agreement to this Final
Order is expressly premised:
Within ten (10) days of receipt of mitten notice from a representative
of the Plaintiffs, the Settling Defendants each shall submit additional written reports, which are
true and accttrate and sworn to tmder penalty of perjury; produce documents for inspection and
copying; appear for deposition; and provide entry during normal business hours to any business
location in each Settling Defendant's possession or direct or indirect control to inspect the
business operation;
In addition, the Plaintiffs are authorized to use all other lawful means, including,
but not limited to:
1. obtaining discovery from any person, without further leave of the Court, using the
procedures prescribed by Federal Rule of Civil Procedure 30, 31, 33, 34, 36, 45
and 69;
having its representatives pose as consumers and suppliers to Settling Defendants,
their employees, or any other entity managed or controlled in whole or in part by
any Settling Defendant, without the necessity of identification or prior notice; and
The Settling Defendants each shall permit representatives of the Plaintiffs to
interview any employer, consultant, independent contractor, representative, agent, or employee
who has agreed to such an interview, relating in any way to any conduct subject to this Final
Order. The person interviewed may have counsel present.
Provided however, that nothing in this Final Order shall limit the Commission's lawful
use of compulsory process, pursuant to Sections 9 and 20 of the FTC Act, 15 U.S.C. jj 49, 57b-
1, to obtain any documentary material, tangible things, testimony, or information relevant to
unfair or deceptive acts or practices in or affecting commerce (within the meaning of 15 U.S.C.
b 45(a)(1)).
Ix. COMPLIANCE RkPORTING
IT IS FURTHER ORDERED that, in order that compliance with the provisions of this
Final Order may be monitored:
For a period of five (5) years from the date of entry of this Final Order,
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1. The lndividual Defendant shall notify the Commission of the following:
a. Any changes in such Individual Defendant's residence, mailing
addresses, and telephone numbers, within ten (10) days of the date
of such change;
b. Any changes in such lndividual Defendant's employment status
(including self-employment), and any change in such lndividual
Defendant's ownership in any business entity, within ten (10) days
of the date of such change. Such notice shall include the name and
address of each business that such Individual Defendant is
affliated with, employed by, creates or forms, or performs services
for; a detailed description of the nature of the business; and a
detailed description of such Individual Defendant's duties and
responsibilities in connection with the business or employment;
and
Any changes in such lndividual Defendant's name or use of any
aliases or fictitious names;
The Settling Defendants shall notify the Commission of any changes in
structure of the Corporate Settling Defendant or any business entity that
any Settling Defendant directly or indirectly controls, or has an ownership
interest in, that may affect compliance obligations arising under this Final
Order, including but not limited to: incoporation or other organization; a
dissolution, assignment, sale, merger, or other action; the creation or
dissolution of a subsidiary, parent, or affiliate that engages in any acts or
practices subject to this Final Order; or a change in the business nnme or
address, at least thirty (30) days prior to such change, provided that, with
respect to any proposed change in the business entity about which a
Settling Defendant learns less than thirty (30) days prior to the date such
action is to take place, such Settling Defendant shall notify the
Commission as soon as is practicable after obtaining such knowledge.
B. One hundred eighty (180) days after the date of entry of this Final Order and
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ammally thereafter for a period of five (5) years, the Settling Defendants each shall provide a
mitten report to the FTC, which is true and accurate and sworn to under penalty of perjury,
setting forth in detail the manner and fonn in which they have complied and are complying with
this Final Order. This report shall include, but not be limited to:
For the Individual Defendant:
a. such Individual Defendant's then-current residence address,
mailing addresses, and telephone numbers;
such Individual Defendant's then-current employment status
(including self-employment), including the nnme, addresses, and
telephone numbers of each business that such lndividual
Defendant is affiliated with, employed by, or performs services
for; a detailed description of the nature of the business; and a
detailed description of such Individual Defendant's duties and
b.
responsibilities in cormection with the business or employment;
and
Any other changes required to be reported under Subsection A of
this Section.
2. For a1l Settling Defendants:
A copy of each acknowledgment of receipt of this Final Order,
obtained pursuant to the Section titled Sr istribution of Final
Orderi'' and
Any other changes required to be reported under Subsection A of
this Section.
b.
Each Settling Defendant shall notify the Commission of the filing of a
bankruptcy petition by such Settling Defendant within tlfteen (15) days of filing.
D. For the purposes of this Final Order, the Settling Defendants shall, unless
otherwise directed by the Commission's authorized representatives, send by overnight courier a11
reports and notifications required by this Final Order to the Commission, to the following
address:
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Associate Director for Enforcement
Federal Trade Commission
600 Pennsylvania Avenue, N.W ., Room N.1-2122
W ashington, D.C. 20580
RE: FTC v. VGC Corporation of America, X110034
Provided that, in lieu of overnight colzrier, the Settling Defendants may send such
reports or notiûcations by first-class mail, but only if the Settling Defendants contemporaneously
send an electronic version of such report or notification to the commission at [email protected].
E. For purposes of the compliance reporting and monitoring required by
this Final Order, the Commission is authorized to communicate directly with each Settling
Defendant.
X. RECORDKEEPING
IT IS FURTHER ORDERED that, for a period of eight (8) years from the date of entry
of this Final Order, the Corporate Defendant, and the Individual Defendant for any business for
which he, individually or collectively, is the majority owner or directly or indirectly controls,
are hereby restrained and enjoined from failing to create and retain the following records:
Accounting records that reflect the cost of goods or services sold,
revenues generated, and the disbursement of such revenues;
B. Personnel records accurately reflecting: the name, address, and telephone number
of each person employed in any capacity by such business, including as an independent
contractor; that person's job title or position; the date upon which the person commenced work;
and the date and reason for the person's termination, if applicable;
C. Customer files containing the names, addresses, phone numbers, dollar nmotmts
paid, quantity of items or services purchased, and description of items or services pm chased, to
the extent such information is obtained in the ordinary cotlrse of business;
Complaints and refund requests (whether received directly, indirectly, or through
any third party) and any responses to those complaints or requests;
E. Copies of a11 sales scripts, training materials, advertisements, or other marketing
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materials, including websites and weblogs; and
F. All records and documents necessary to demonstrate full compliance
with each provision of this Final Order, including but not limited to, copies of acknowledgments
of receipt of this Final Order required by the Sections titled tr istribution of Final Order'' and
dtAcknowledgment of Receipt of Final Order'' and a11 reports submitted to the FTC pursuant to
the Section titled lçcompliance Reporting.''
XI. DISTRIBUTION OF FINAL ORDER
IT IS FURTHER ORDERED that, for a period of tsve (5) years from the date of entry
of this Final Order, the Settling Defendants shall deliver copies of the Final Order as directed
below:
Corporate Defendant: The Corporate Defendant must deliver a copy
of this Final Order to (1) a11 of its principals, officers, directors, and managers; (2) all of its
employees, agents, and representatives who engage in conduct related to the subject matter of
the Final Order; and (3) any business entity resulting from any change in stnzcture set forth in
Subsection A.2 of the Section titled Slcompliance Reporting,'' For current personnel, delivery
shall be within five (5) days of service of this Final Order upon such Comorate Defendant. For
new personnel, delivery shall occur prior to them assuming their responsibilities. For any
business entity resulting from any change in structure set forth in the Section titled dçcompliance
Reporting,'' delivery shall be at least ten (10) days prior to the change in structure.
Individual Defendant as Control Person: For any business that the
Individual Defendant controls, directly or indirectly, or in which such Individual Defendant has a
majority ownership interest, such lndividual Defendant must deliver a copy of this Final Order to
(1) a1l principals, offcers, directors, and managers of that business; (2) al1 employees, agents,
and representatives of that business; and (3) any business entity resulting from any change in
structure set forth in Subsection A.2 of the Section titled ilcompliance Reporting.'' For current
personnel, delivery shall be within five (5) days of service of this Final Order upon such Settling
Defendant. For new personnel, delivery shall occur prior to them assuming their responsibilities.
For any business entity resulting from any change in structure set forth in Subsection A.2 of the
Section titled ççcompliance Reporting,'' delivery shall be at least ten (10) days prior to the
change in structttre.
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C. lndividual Defendant as employee or non-control person: For any
business where the lndividual Defendant is not a controlling person of a business but otherwise
engages in conduct related to the subject matter of this Final Order, such Individual Defendant
must deliver a copy of this Final Order to all principals and managers of such business before
engaging in such conduct.
The Settling Defendants must secure a signed and dated statement acknowledging
receipt of the Final Order, within thirty (30) days of delivery, from all persons receiving a copy
of the Final Order ptlrsuant to this Section.
XII. COOPERATION W ITH PLAINTIFFS' COUNSEL
IT IS FURTHER ORDERED that each Settling Defendant shall, in colmection with
this action or any subsequent investigations related to or associated with the transactions or the
occurrences that are the subject of the Plaintiffs' Complaint, cooperate in good faith with the
Plaintiffs and appear, or cause its oftkers, employees, representatives, or agents to appear, at
such places and times as the Plaintiffs shall reasonably request, after written notice, for
interviews, conferences, pretrial discovery, review of documents, and for such other matters as
may be reasonably requested by the Plaintiffs. If requested in writing by the Plaintiffs, a Settling
Defendant shall appear, or cause its officers, employees, representatives, or agents to appear, and
provide truthful testimony in any trial, deposition, or other proceeding related to or associated
with the transactions or the occurrences that are the subject of the Complaint, without the service
of a subpoena.
Xlll. ACKNOW LEDGM ENT OF RECEIPT OF FINAL ORDER
IT IS FURTHER ORDERED that each Settling Defendant, within five (5) business
days of receipt of this Final Order as entered by the Court, must submit to the Commission a
truthful sworn statement acknowledging receipt of this Final Order in the style of the form
appended as Attachment A hereto.
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XIV. RETENTION OF JURISDICTION
IT IS FURTHER ORDERED that this Court retains jurisdiction of this matter for
pumoses of construction, modification, and enforcement of this Final Order.
IT Is so oltoEuo,this !j day of , 2012, at JUV m.
t
JOSE M ARTINEZ
UNIT STATES DISTRICT JUDGE
Copies provided to:
M agistrate Judge McAliley
A11 Counsel of Record
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